Can you add a timeshare to your net worth statement?

Chichen Itza
I own a timeshare – yes, I am one of “those” people that went to “the talk” when getting into the Cancun, Mexico airport and thought, heck, why not?  I was 23, with my mother (taking her on vacation for her 50th birthday) and we decided we’d go in on it togehter and possibly wrangle in my other brother to join in on the cost.  They sat us down and started at places for 30k per year, which was well out of my budget for being 23 and we whittled the price down to 10k for a double room (sleeps 10) every 2 years.  Split that 3 ways and it was $3,333  for each of us to guarantee a place to vacation to every other year.  It has a maintenance fee every 2 years of $700, so we pay $233 every 2 years ($115 per year or about $10 per month) to hold on to it.  It gives my family which live at the closest point, 550 miles away a chance once every two years to vacation together.  I enjoy it, it doesn’t bust the bank at $10/month and we’ve used it twice now and had a good time each time.

Clearly I’m the type of person they look for when flying in, but negotiating is the key.  Just like a used car salesman DON’T say yes for at least the first hour or 2 of sitting down with the guy.  You’ll find a better deal.  I’m sure I could have held out for a better one, but I actually am very happy with it.  It also has a caveat to it that says we don’t actually have to go to Mexico each year either – With Interval International we can go anywhere we want and just “bank” our week there at the Royal Sands

So the question at hand is whether or not this can count towards being part of your net worth.  Is it?  I mean, technically speaking there are several ways to calculate it and none are the definitive answer.  A few different views: Millionaire Next Door, Bargaineering, Young and Broke (also gives a good reason TO create the net worth), The Simple Dollar, Hellyer, MiserlyB (good comparison of pre or post-tax calculations), India4u (considers timeshare investments as part of the total), Punny (good point/battle for why it is a poor measure of wealth), and mine.

I know that it isn’t a GREAT investment vehicle, nor a good choice, but at 23 you’re not thinking about that stuff.  So what do you do with it now?  I think it is part of your net worth.  If you break down net worth to its most basic, assets-liabilities.  If you sold EVERYTHING you owned today, this would be one of them, I could sell it, yes.  Maybe not for the 10k I bought it for, maybe more, maybe less, but I could sell it.  Now the piece to the puzzle is how I calculate the worth of a timeshare.  Anyone have any ideas?

Filed Under: InvestingNet WorthReal EstateTimeshare

  • Pingback: Networth update November 1, 2007 (+8.99%) - myinvestingblog.com()

  • Determining the value of a timeshare is a tough thing to do. Someone may consider theirs a liability if they never use it, pay maintenance fees, and have no hope of ever selling it. On the other hand, it will have some value to a buyer – how much?

    Other owners may have a very valuable asset in their timeshare ownership.

    No one formula will fit every one: there’s too many variables.

  • I don’t think they count towards your net worth as they are hard to place a dollar amount on. They are only worth what someone else will pay provided you tried to sell it.

    http://www.vacationtrader.org

  • Tom Martin III ,PhD

    conservation of networth…manage the misc travel dollars toward ownership…if u travel in your ownership plan over the longterm you could preserve your net worth when you reach free and clear ownership within your timeshare deed. free and clear ownership promote independence…..

  • Timeshares can be a terrific purchase for some families, as they also can be a giant rip off for others. 50 years ago, also known as Holiday Home Sharing or timeshare travel, timeshares were created with the idea of offering fully furnished accommodations for a lower price than a full-time ownership.

  • Buying a timeshare under the impresion you will save money on the long run on travel expenses such as airfare or cruises equals to being a victim of timeshare fraud. Timeshares will barely provide you a small discount on accomodations and that´s it. Timeshares will not provide you, in most cases, any discounts on your vacation expenses.

  • Timeshare industry is known for being very susceptible to scams; however, timeshare properties are still a successful business for most resorts. In these times of rough economy, it is important to take care of our money, and timeshares are not in the way to achieve the financial security that we are all looking for.

  • Thousands of International travelers, particularly from the US and Canada, have fallen
    victims of timeshare fraud while vacationing in Mexico. Resort developers hire skilled salesmen to represent their timeshares as many different attractive packages, such as financial investments, deeded properties, or vacation clubs, just to increase their sales.

  • Thousands of International travelers, particularly from the US and Canada, have fallen
    victims of timeshare fraud while vacationing. Resort developers hire skilled salesmen to represent their timeshares as many different attractive packages, such as financial investments, deeded properties, or vacation clubs, just to increase their sales.

  • Timeshare fraud has been around since the timeshare idea was created, but they increase during poor economy. When times are difficult, timeshare owners are stuck with properties they can´t travel to or even afford.
    Desperate to recoup some money to pay for bills, they can easily become victims
    to scams artists pretending to be their timeshare salvation who will take upfront fees -as much as five number figures in some cases- but fail to fulfill their promise.

  • The timeshare industry has been into the lion’s mouth for the last couple of years, and it has generated lots of controversy and discussions in many forums and blogs on the web. However, since we’re living an economic downturn, anyone would expect that the timeshare sales collapse, but instead of that the sales seem to be increasing… but this comes with a trap: timeshare scams are increasing too. That leads us to the question: then, why keep people investing on timeshares?